As part of the proposed plan, the Sackler family agreed to pay an additional $ 4.2 billion over the next nine years to resolve several civil suits.
“The vast majority of Debtors’ assets will be dedicated to programs to alleviate the opioid crisis. Billions of dollars will go to funds created for the benefit of states and localities, as well as other groups of creditors, such as Native American Tribes, hospitals, and children with a history of Neonatal Abstinence Syndrome and those responsible for it. Each trust will require that resources be dedicated exclusively to opioid reduction efforts, and there will be transparency to guarantee “, affirm court documents.
The restructuring plan has more than 300 pages. He details how the distressed pharmaceutical company plans to transfer billions of dollars and operating assets to a newly formed company whose stated mission is to resolve the country’s opioid crisis.
Purdue Pharma said in a press release that state and local governments will not own or operate the new company and that more than $ 10 billion will be earmarked for “providing, at a cost, millions of doses of opioid addiction treatment that can save lives and reversible overdose medications. “
Purdue Pharma’s plan will also distribute funds through two newly established national opioid reduction funds: the National Opioid Abatement Trust (the “NOAT”) and the Tribe Trust, which will be dedicated to resolving claims by Native American tribes.
“All the amount distributed to NOAT and the Tribe Trust will be dedicated exclusively to programs designed to alleviate the opioid crisis and for no other purpose (other than to finance the administration of the programs themselves and pay fees and costs). Debtors believe that financing these dedicated rebate funds, while allocating a significant amount for distribution to PI Claims holders, is in the best interest of creditors and the American public, “claim court documents.
A hearing to approve the plan is scheduled for April 21.
The Sacklers have already paid $ 225 million under an initial settlement framework to satisfy their civil settlement with the U.S. Department of Justice and people associated with the Sackler entities have agreed to be “prohibited from engaging in the manufacture or sale of opioids, subject to exceptions to be agreed, “state court documents.